Chinese merchants still have a major influence in the cryptocurrency market, even with all the specific issues they must now operate. This is the opinion of many experts in the field, who have noted how China’s recent prohibition and ban proposals are actually affecting Chinese bagholders operating their businesses in Asian and worldwide exchanges.
Chinese businessmen are still big in the market
According to various experts knowledgeable about how Asian markets work, Chinese merchants still have a large influence on how the crypto market operates, even with all the difficulties to operate them. Have to face. Even bypassing all government regulations, these traders are still managing to trade, taking advantage of the gray market and other services that allow them to exchange local currency for crypto Huh.
China news iNavoking Strict warning Cryptocurrency trading and initial coin offerings (ICOs) are not new: China has warned against these activities since 2017 when it outlawed domestic cryptocurrency exchanges. It seems now extended guideline In the area of cryptocurrency mining, Chinese Vice Premier Liu He said the country should “take action on bitcoin mining and trading behavior”, a statement that created some conditions for a large dump in the market last week.
However, according to Matthew Graham, CEO of China Global Capital, a local blockchain firm, Chinese traders are still really powerful in the market. Graham Having said:
The declining influence of Chinese bitcoin traders is an exaggerated story. The fact is that Chinese traders still have a huge influence.
One of the first Chinese cryptocurrency exchanges, BTCC founder Bobby Lee also agreed with this opinion. Lee insisted:
I think there are more Chinese traders now. Bitcoin has gained an order of magnitude in price
How is it being done?
after meBeginning of stricter rules towards Most cryptocurrency-related services, an offshore gray market appeared to meet the demand for these assets. There are now services that allow Chinese citizens to convert their local currency, the yuan into a stable currency such as USDT. Is passing USDT, Traders now have the possibility to move their business to offshore exchanges that allow crypto to crypto trading.
In this way, the renminbi is virtually untapped in cryptocurrency purchases, at least officially. Bobby Lee agrees, saying:
“They no longer have to deal with RMB transfers, it’s moving forward” USDT Paying society and moving in and out of bitcoin. It is becoming an underground currency. “
Lee emphasizes the importance that USDT Is intended as a means for Chinese traders to obtain trade in international exchanges.
What do you think about the influence of Chinese traders in the cryptocurrency market? Tell us in the comments section below.
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